{"id":500738,"date":"2022-09-01T19:00:29","date_gmt":"2022-09-01T19:00:29","guid":{"rendered":"https:\/\/www.ktsl888.com\/?p=500738"},"modified":"2024-06-11T14:23:14","modified_gmt":"2024-06-11T14:23:14","slug":"bitcoin-derivatives-reserve-up-volatility-soon","status":"publish","type":"post","link":"https:\/\/www.ktsl888.com\/news\/bitcoin-derivatives-reserve-up-volatility-soon\/","title":{"rendered":"Bitcoin Derivatives Reserve Surges Up, More Volatility Soon?"},"content":{"rendered":"
On-chain data shows the Bitcoin derivatives exchange reserve has surged up recently, a sign that the crypto may face more volatility in the near future.<\/p>\n
As pointed out by an analyst in a CryptoQuant post<\/a>, conditions seem to be brewing up in the BTC market that could lead to higher volatility in the price.<\/p>\n The “derivatives exchange reserve<\/a>” is an indicator that measures the total amount of Bitcoin currently sitting in the wallets of all derivatives exchanges.<\/p>\n When the value of this metric goes up, it means investors are depositing their coins into these exchanges right now. Since BTC going up on derivatives generally leads to an increase in leverage, such a trend can result in higher volatility in the price of the crypto.<\/p>\n On the other hand, the value of the indicator registering a decline implies coins are exiting derivatives exchanges as holders are withdrawing them. This kind of trend may precede a more calmer BTC price.<\/p>\n Now, here is a chart that shows the trend in the Bitcoin derivatives exchange reserve over the past few weeks:<\/p>\n <\/p>\n As you can see in the above graph, the Bitcoin derivatives exchange reserve has seen some upwards momentum during the last couple of days. This shows that leverage in the market is now going up.<\/p>\n The chart also includes data for the mean value of the BTC transaction fees (in USD), and it looks like this metric also saw a spike during the past day, suggesting there have been some big moves in the market.<\/p>\nThe value of the metric seems to have climbed up in recent days | Source: CryptoQuant<\/a><\/pre>\n